According to the Rule of 70,if a Country Grows at 2.0

question 106

Multiple Choice

According to the Rule of 70,if a country grows at 2.0 percent per year instead of 1.5 percent per year,how many fewer years will it take to double its level of real GDP?

• A)It will take 11.6 years fewer.
• B)It will take 35 years fewer.
• C)It will take 58.3 years fewer.
• D)It will take 20 years fewer.
• E)It will take 17.9 years fewer.

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Definitions:

Classical Economists

A group of economists in the late 18th and early 19th centuries who believed in the theory that markets function best without government intervention.

Adam Smith

A Scottish economist, philosopher, and author known as the father of modern economics, famous for his work "The Wealth of Nations."

Aggregate Demand

The total demand for all goods and services in an economy at different price levels, during a specific time period.

Value of Money

The purchasing power of currency, indicating the amount of goods or services that can be bought with a unit of money.